11/20/2018 – so, this ratio is running the show right now. if you read the below NONE of this should be a surprise as the PATTERNS worked and the XLP/QQQ buy pattern has taken off, causing a risk off mindset and the NAZZIE to get blasted. That being said, all is not lost. While I do think we have some more carnage to come, ultimately the ratio is going to smack right into a very strong trend line and the technical analysis concept of POLARITY should cause support or THE bottom for a GREAT BUY. The chart below should give you and idea of why the area labeled ‘resistance’ should offer strong support for the institutions and offer a great BUY of the Q’s and technology.
let me know if you have any questions.
note the ratio .. we have a pretty nice bullish engulfing pattern on the ratio which is precursor to potentially further weakness. If looking to BUY the Q’s would definitely wait for a nice sell pattern or overhead resistance to be hit before stepping in …certainly appears to have some room to run.
here’s the QQQ on a daily time frame w/ the target zone denoted. sure looks like another wave of selling should be starting to complete a 5 waves sequence. Is that A or 1 … if A, then a rally should occur followed by more selling and then a BUY. If 1 then we have, potentially, a lot more downside to come.
I do not know or care which it is ….1 or A. Just looking for a pattern.
Also, doing a monthly log below to look for key trend line support or breaks.
In July, we noticed this pattern completing. Yes, we went 3 points thru but the RATIO held and popped big time today. Watch the median line shown below on the XLP/QQQ and see if price goes thru the line then the sell off could continue.